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FITNESS, HEALTH, WELLNESS

features

Editor's letter: Reverse globalisation

The making and shipping of products long distances is contributing to earth death. Now the EU is introducing import/ export laws to force companies to localise their supply chains

Published in Health Club Management 2023 issue 8
The EU is clamping down on carbon-heavy imports / photo: shutterstock/ Tim Townley
The EU is clamping down on carbon-heavy imports / photo: shutterstock/ Tim Townley
The new tax landscape will affect the makers and importers of fitness equipment and so will – in turn – impact operators

Import-export legislation isn’t the most sexy topic and for those focused on their own businesses and lives, the majority of changes to these kinds of legal frameworks are likely to go unnoticed.

However, the EU has been working hard on a new law that takes effect from next month (October 2023) and that will change the shape of supply, with implications for operators and suppliers (see page 44).

Called the Carbon Border Adjustment Mechanism – or CBAM for short – it’s all part of the EU’s ambition to make Europe the first climate neutral continent by 2050.

Parts of this goal are to be realised by ‘disincentivising’ the import of goods and materials from countries with lax environmental standards, or where shipping long distances causes harm to the planet.

The EU’s view is that it isn’t OK for Europe to hit its eco targets while still importing from countries which are pumping out carbon. Neither is it OK to be shipping things around the world that could be made locally, so CBAM is basically a push for reverse globalisation.

To deliver on this goal, carbon taxes will be payable by all companies importing into the EU and the greater distance goods and materials have to travel, the more tax will be due.

Although the UK is no longer technically part of the EU, it’s thought it will align with this new process.

The timeline for the introduction of CBAM will see the final tranche of legislation coming into effect in January 2026 – in only 15 months time – so the rollout of the law will be rapid, forcing companies to adapt.

The new tax landscape will mainly hit the makers and importers of fitness equipment and other kit for health clubs, however, in a facility-based market this in turn will impact operators, meaning we’ll see some disruption in the supply side of the industry where companies have not been aware of or preparing for CBAM.

There will also be work to be done reversing current practices where supply chains were set-up in non-EU countries with less ambitious environmental policies to avoid the EU Emission Trading System.

Because CBAM will favour companies that manufacture within the EU, it’s likely we’ll see some movement in the sales rankings of major suppliers and perhaps a flurry of M&A activity.

We also expect discussions to be held around contracts where operators have committed to longer terms with suppliers who will have to raise prices.

Ultimately, this is the reality of the climate crisis and if we don’t adapt, we won’t have a planet to live on, so the industry needs to move fast and with energy and purpose to accommodate this new reality.

Liz Terry, editor [email protected]

https://www.leisureopportunities.co.uk/images/2023/159092_427061.jpg
New legislation is changing import tax on goods and materials from outside Europe and will trigger a reorganisation of supply chains, says Liz Terry
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features

Editor's letter: Reverse globalisation

The making and shipping of products long distances is contributing to earth death. Now the EU is introducing import/ export laws to force companies to localise their supply chains

Published in Health Club Management 2023 issue 8
The EU is clamping down on carbon-heavy imports / photo: shutterstock/ Tim Townley
The EU is clamping down on carbon-heavy imports / photo: shutterstock/ Tim Townley
The new tax landscape will affect the makers and importers of fitness equipment and so will – in turn – impact operators

Import-export legislation isn’t the most sexy topic and for those focused on their own businesses and lives, the majority of changes to these kinds of legal frameworks are likely to go unnoticed.

However, the EU has been working hard on a new law that takes effect from next month (October 2023) and that will change the shape of supply, with implications for operators and suppliers (see page 44).

Called the Carbon Border Adjustment Mechanism – or CBAM for short – it’s all part of the EU’s ambition to make Europe the first climate neutral continent by 2050.

Parts of this goal are to be realised by ‘disincentivising’ the import of goods and materials from countries with lax environmental standards, or where shipping long distances causes harm to the planet.

The EU’s view is that it isn’t OK for Europe to hit its eco targets while still importing from countries which are pumping out carbon. Neither is it OK to be shipping things around the world that could be made locally, so CBAM is basically a push for reverse globalisation.

To deliver on this goal, carbon taxes will be payable by all companies importing into the EU and the greater distance goods and materials have to travel, the more tax will be due.

Although the UK is no longer technically part of the EU, it’s thought it will align with this new process.

The timeline for the introduction of CBAM will see the final tranche of legislation coming into effect in January 2026 – in only 15 months time – so the rollout of the law will be rapid, forcing companies to adapt.

The new tax landscape will mainly hit the makers and importers of fitness equipment and other kit for health clubs, however, in a facility-based market this in turn will impact operators, meaning we’ll see some disruption in the supply side of the industry where companies have not been aware of or preparing for CBAM.

There will also be work to be done reversing current practices where supply chains were set-up in non-EU countries with less ambitious environmental policies to avoid the EU Emission Trading System.

Because CBAM will favour companies that manufacture within the EU, it’s likely we’ll see some movement in the sales rankings of major suppliers and perhaps a flurry of M&A activity.

We also expect discussions to be held around contracts where operators have committed to longer terms with suppliers who will have to raise prices.

Ultimately, this is the reality of the climate crisis and if we don’t adapt, we won’t have a planet to live on, so the industry needs to move fast and with energy and purpose to accommodate this new reality.

Liz Terry, editor [email protected]

https://www.leisureopportunities.co.uk/images/2023/159092_427061.jpg
New legislation is changing import tax on goods and materials from outside Europe and will trigger a reorganisation of supply chains, says Liz Terry
Latest News
Boxing and strength franchise UBX has taken a step closer to realising its ambitions to ...
Latest News
Fitness International has announced the acquisition of XSport Fitness, adding to its portfolio of brands, ...
Latest News
Community Leisure UK (CLUK) and The Richmond Group of Charities have joined forces to support ...
Latest News
Mental Health Swims has been awarded almost £18,000 of lottery money to extend its mission ...
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Employee wellness app GoJoe has teamed up with Les Mills for a major new content ...
Latest News
Former footballer, David Beckham, has become a strategic investor in health sciences company, Prenetics, which ...
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Gymbox has partnered with Haringey Council and not-for-profit organisation, Raza Sana, to give opportunities to ...
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In a bid to get girls more active, Nuffield Health has launched a campaign, Move ...
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Featured supplier news
Featured supplier news: THFI’s new online coaching course partners with FITR: launch your business confidently post-completion
In today's rapidly evolving fitness industry, where many online courses promise secret formulas for entrepreneurial success, the reality is that few provide the necessary knowledge to thrive in this fast-changing profession.
Company profiles
Company profile: ukactive
ukactive is the UK’s leading not-for-profit membership body for the physical activity sector, bringing together ...
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Company profile: Inspace Fitness
Inspace Fitness is an exciting, fast growing, fitness equipment, gym design and equipment service supplier ...
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Supplier showcase - Matrix: Futureproofing
Supplier Showcases
Supplier showcase - Safe Space: Delivering the vision
Catalogue Gallery
Click on a catalogue to view it online
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Everyone Active press release: Green light for Northcroft Leisure Centre £4.6 million refurbishment
Northcroft Leisure Centre in Newbury is set for a major transformation as a result of a £4.6million investment from West Berkshire Council.
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Greenwich Leisure Limited press release: Better's summer of sport – activities for kids & families
Charitable leisure social enterprise GLL – which operate facilities in partnership with 50 local authorities under the ‘Better’ brand – has announced a sizzling summer of kids and family activities to coincide with the school holidays.
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Snowroom
TechnoAlpin SpA: Snowroom
Cryotherapy
Art of Cryo: Cryotherapy
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Salt therapy products
Himalayan Source: Salt therapy products
Spa software
SpaBooker: Spa software
Lockers
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Jersey
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IMPACT Exhibition Center, Bangkok, Thailand
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Wyndham® Lake Buena Vista Disney Springs™ Resort, Lake Buena Vista, United States
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19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
20-22 Sep 2024
Locations worldwide,
Diary dates
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REVĪVŌ Wellness Resort Nusa Dua Bali, Kabupaten Badung, Indonesia
Diary dates
09-13 Oct 2024
Soneva Fushi, Maldives
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Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
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QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
04-06 Feb 2025
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
11-13 Feb 2025
Fairmont Riyadh , Saudi Arabia
Diary dates
10-13 Apr 2025
Exhibition Centre , Cologne, Germany
Diary dates
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Worldwide, Various,
Diary dates
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Koelnmesse, Cologne, Germany
Diary dates
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